Office construction is alive and well in and around Boston, caused in part by large investments made by biotechnology firms expanding into the Boston area. The last quarter of 2011 saw dramatic increases in comparison to the first three quarters of the year.
Interestingly enough, the majority of new construction projects due to complete within the next several months has already been committed to firms to have tenancy upon completion. 2008 showed the highest amount of square footage of construction, although the economic climate was in a much different state then and around 2007. Moreover, it was in the third quarter of 2007 where the construction, then underway, only had 6% of the space committed to occupancy by companies.
John Miller, Senior Vice President of Lincoln Property Co., told how the results that even rents in the past year have jumped from where they were in 2010. Miller relayed that the typical price per square foot for renting in a first-rate, high-rise establishment went from $43.67 in 2010 all the way to $45.56 in 2011.
Many companies are rushing into our market and are making heavy investments, most of these often are found in the Innovation District where development is moving at a serious pace. Here, one firm worth mentioning as an example is the $800 million monster that will house Vertex Pharmaceuticals Inc. Other areas with some notable building plans are Biogen Indecs investment in Kendall Square, Liberty Mutual Insurance Co.s tower in Bostons Back Bay neighborhood, or finally even Swiss Pharmaceutical Novartis AG with its complex by Cambridges Central Square. There is great promise in the future of Boston as our city only continues to grow and prosper.
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